Volume 13 Number 1 - University of the Philippines College of Law

January - March 2002 National Administrative Register 513
1. SCOPE
This Memorandum Order shall cover the imposition of allowable standby penalty charges
at the South Harbor and the MICT.
2. OBJECTIVES
2.1 To guide ATI and ICTSI in the proper imposition of allowable standby penalty charges;
2.2 To resolve disagreements between the cargo handling service providers and the shipping
lines with respect to the imposition of standby penalty charges.
3. CLARIFICATIONS
3.1 Standby Penalty Charges
Standby penalty charges shall be applied on delays in the loading or discharging of
containers, the causes of which are beyond the control of the terminal operator. In general,
standby penalty charges shall be imposed from the time operation stops up to the time it
resumes, under any of the following circumstances.
3.1.1 Waiting for vesselís arrival, provided, the reckoning point shall be based on vesselís
original ETA. Amendments to ETA should be submitted not later than 12 hours before ETA
from foreign port and 6 hours from any local port;
3.1.2 Waiting for shipís agent, provided, there will be no charge if agent transports
quarantine doctor/boarding officer;
3.1.3 Opening/closing bay covers by shipís crew, which is applicable only to McGregor or
similar hatches;
3.1.4 Waiting for shipís crew, provided, there is a written request from shipping line;
3.1.5 Waiting for cargo from outside port zone, excluding exempted cargoes in the PPA
ruling, i.e., transshipment. refrigerated, dangerous cargoes, etc., provided, there is a
written request from shipping line;
3.1.6 Snatching of cargo/container which involves the removal of container from the
ëtween deck;
3.1.7 Change of stowage plan shipís agent if submission of same is made after loading
closing time (LCT);
3.1.8 Waiting for loading sequence/bay plan if submission of same is made after LCT;
3.1.9 Vesselís listing/trimming, provided, there is confirmation from the shipping line/
vessel command and terminal operator;
3.1.10 Delay due to lack of lashing materials, revision of lashing scheme, provided, there
is confirmation from the shipping line and terminal operator;